A START-UP company supplying set-top boxes has struck a deal with one of Britain's biggest retailers.

Systems designed and developed by Pencoed-based TVonics are about to appear on the shelves of Dixons and Currys.

The devices enable conventional analogue televisions to receive digital television broadcasts such as the Freeview service in the UK.

TVonics is the only British company to mass-manufacture these decoders in Britain.

Between 2008 and 2012, analogue television will disappear from the UK.

The set-top box will be sold under the Ferguson brand and called FD1 PRISM.

For seven months the company has been based at a business innovation and incubations centre in Sony's technology centre at Pencoed.

In February, the product was at the design and development stage and in July they began production of 100 prototype units. This month they commenced mass production.

TVonics has recruited software design specialists who previously designed digital television receivers for Sony.

The company now subcontracts the manufacture of its own set-top box to Sony's manufacturing facility.

Paul Fellows, founder and CEO of TVonics, said, "Dixons Stores Group is a renowned retailer of high quality products which is why we are so delighted to have secured this contract.

"The decoder we have designed is stylish and unique in the market and incorporates the latest technology to deliver a fast, responsive performance with good digital television reception quality.

"We are particularly pleased to be able to offer to the British public, a British-designed and manufactured product with enables them to watch digital television channels on their existing analogue television sets."

TVonics CEO Andy Carr added that the production support provided by Sony Manufacturing had made possible their swift entry into the marketplace.

Andrew Davies, Minister for Economic Development and Transport, said it was an example of the potential for partnerships at Technium Digital@Sony.

He said, "Tenant companies are offered unrivalled access to Sony's specialist manufacturing and testing equipment as well as the expertise of their highly experienced engineering staff.

"This has been an important element in enabling TVonics progressing into mass manufacturing in such a short time frame and securing such a prestigious order.

"The combination of hi-tech skills and expertise in software and hardware design at TVonics, coupled with Sony's manufacturing capability is proving to be a winning combination."

TVonics has been supported through the Technium network and received mentoring and specialist support from Entrepreneur Action under the WDA's new Business Starts programme.